Jacques has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontransferable ticket. Now Kyoko, whom Jacques has wanted to date for a long time, asks him to a party. Jacques would prefer to go to the party with Kyoko and forgo the play, but he doesn't want to waste the $50 he spent on the play ticket.
From the perspective of an economist, if Jacques decides to go to the party with Kyoko, what has he just done?

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TomShelby TomShelby · Answer 1 · 2019-09-17T05:45:51+02:00

Answer:

evaluate under opportunity cost

Explanation:

This is an exmaple of opportunity cost:

The opportunity cost is the cost of the best alternative rejected:

Jacques opportunity cost of the date is lossing the play and the $50 dollars of the ticket

as the date and party opportunity cost is not datingthe girl

As Jacques picks the date , it will be evaluating dating as more rewarding than the play as it prefer to renounce to the play rather than the date